The government has agreed to reconsider its decision not to compensate millions of women affected by increases in the state pension age after new evidence emerged in ongoing court cases.
Work and Pensions Minister Pat McFadden told MPs that ministers will withdraw from an upcoming judicial review by the Women Against State Pension Inequality (Waspi) campaign while the newly uncovered material is investigated.
The decision marks a significant shift in the long-running dispute over how women born in the 1950s were informed of changes to the state retirement age. Activists argue they were not adequately informed about the increases that brought their retirement ages in line with men’s, leaving many financially unprepared.
McFadden said the new evidence related to previously unpublished Department for Work and Pensions (DWP) documents from 2007 that were not provided to his predecessor Liz Kendall when she ruled out compensation last December.
“As part of the legal challenge to the government’s decision, evidence was cited on research findings from a 2007 report,” McFadden told the House of Commons. “With this in mind, and in the interests of fairness and transparency, I have concluded that the government should now consider this evidence. This means we will repeat the decision from last December.”
He added that if Kendall had been provided with the report, she would have “considered it alongside all other relevant evidence and materials.”
In March 2024, the Parliamentary and Health Services Ombudsman recommended that affected women receive compensation of up to £2,950 each, which could cost the Treasury around £10.5 billion. Kendall rejected this advice at the time, saying most people were aware of the state pension changes.
McFadden, who was appointed work and pensions secretary earlier this year, stressed that the new review “should not be taken as an indication” that compensation will necessarily be awarded. However, he said the government wanted to ensure all relevant evidence was considered before making a final decision.
Waspi activists, who have fought for reparations for almost a decade, welcomed the announcement but called on ministers to act quickly.
Angela Madden, Chair of the Waspi Campaign, said: “We have been fighting for compensation for ten years. The government has fought us every step of the way. The only right thing to do is to immediately compensate the 3.6 million Waspi women who have already waited too long for justice.”
The problem dates back to the 1995 Pensions Act, which included plans to raise the state pension age for women from 60 to 65, and later the coalition government’s 2011 legislation, which raised the age to 66 for men and women. Campaigners say communication failures from the DWP meant many women only noticed the changes close to retirement.
It is estimated that around 300,000 women affected by the policy have died since the first compensation claim was made in 2015.
While McFadden has hinted at the possibility of modest welfare reforms to balance public finances, his decision to revisit the Waspi ruling signals a more conciliatory approach from the new Labor government – one perhaps aimed at restoring trust after years of strife.
